Single or dual sourcing: decision-making in the presence of supply chain disruption risks

Haisheng Yu, Amy Z. Zeng and Lindu Zhao

Omega, 2009, vol. 37, issue 4, 788-800

Abstract: The focus of this paper is placed on evaluating the impacts of supply disruption risks on the choice between the famous single and dual sourcing methods in a two-stage supply chain with a non-stationary and price-sensitive demand. The expected profit functions of the two sourcing modes in the presence of supply chain disruption risks are first obtained, and then compared so that the critical values of the key factors affecting the final choice are identified. Finally, the sensitivity of the buyer's expected profit to various input factors is examined through numerical examples, which provide guidelines for how to use each sourcing method.

Keywords: Supply; chain; disruption; Sourcing; Supply; management; Risk; management; Sensitivity; analysis; Decision-making/process (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (106)

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